Cboe Global Markets Releases Q4, 2018 Financial Results, Reporting Strong Rise in Net Revenue and Profits

Karthik Subramanian

Karthik Subramanian has been a professional trader and fund manager over the last 18 years. He is basically a software developer who made the transition to financial domain around 18 years back as the attractiveness of the financial markets proved too much for him. He lives in Chennai in India along with his wife and son. He began his career as a software developer in 1999 and then gradually moved into the financial industry as he began trading stocks in his pastime. He then moved into the financial markets full time and then shifted his focus to the FX markets due to the liquid nature of these markets. Since then, he has been trading FX diligently and his favourite pair are the EURUSD and EURJPY. Over the last couple of years, he has found blockchain to be of high interest and considering his background in software and finance, he has since assembled a team of highly talented developers who have since worked on a variety of projects like crypto exchanges and blockchain architecturing. Now, he balances his time between trading and commenting on both the FX and crypto markets. He has worked with many publications including FX Street and Finance Magnates, which has helped him gain experience and also recognition across the industry. He loves to write and this passion has helped him to reach out across the FX and crypto industry. Right now, he works on his pet projects in the FX and crypto industry and spends his time writing and managing his blockchain team and helping it to reach higher.


Cboe Global Markets Releases Q4, 2018 Financial Results, Reporting Strong Rise in Net Revenue and Profits

February 12, 2019

CboeCBOE Global Markets, Inc. (Cboe: CBOE) has released its Q4 2018 financial results and as well as for the full year, beating analysts estimates by a wide margin.

The company recorded strong growth in net revenue, operating profit and operating margin during the time period. The net revenue in the final quarter of 2018 was reported at $334.4 million, which 26 per cent higher from $265.6 million in Q4, 2017. The operating income during the quarter came in at $176.4 million which is 62 per cent higher compared to $108.7 million in Q4, 2017. On an adjusted basis, the operating income is 39 per cent higher to $222.6 million from $160.6 million.

The operating margin during the quarter came in at 52.8 per cent whereas, the adjusted operating margin is 66.6 per cent. Compared to the increase in revenue, the operating expense rose marginally by 1 per cent during the quarter. Further breaking up the revenue by the company’s business segment, the details are as follows:


The net revenue generated for Options is at $174.5 million, which is 39 per cent higher compared to Q4, 2017. The increase during the quarter was primarily due to higher transaction fees from increased revenue per contract and an increase in trading volume. The average daily volume of options traded grew by 23 per cent.

US Stocks

The company’s US Stocks business grew by over 18 per cent or $12.5 million to reach $81.5 million. The growth was fueled by an increase in net transaction fees which was driven by 33 per cent jump in average daily trading volumes.

European Stocks

Cboe’s European stock business generated a revenue of $24.3 million, which is 29 per cent higher from Q4, 2017. The increase in revenue was attributed to growth in net non-transactional and transactional revenues. The company also maintained a leading position among Pan-European stock exchanges in term of its size and market share at 22.7 per cent.

Global Forex Revenue

The company’s net revenues from forex trades grew by nearly $1.7 million to $13.7 million, translating a 14 per cent increase driven by growing net transactional fees as compared to Q4 2017.

Regarding the financial guidance for fiscal 2019, the company expects a slight 2 per cent increase in operating expenses and is predicted between  $420 million and $428 million. The company has declared a dividend of $0.31 per share, making a total dividend payout at $34.7 million in Q4,2018. 

 Edward T. Tilly, Cboe Global Markets Chairman, President and Chief Executive Officer commented on the results:

“Our record results were fueled by growth across all of our business segments and, most notably, in our suite of proprietary products. Additionally, we continued to make steady progress towards achieving our synergy targets while remaining focused on executing our strategic initiatives and defining markets to serve investors globally, as demonstrated by our announced rollout of Cboe Select Sector Index Options on 11 industry sectors that comprise the S&P 500 index. We are well-positioned to continue to deliver value to our customers and shareholders. A tremendous team effort made 2018’s record results possible, and we are very excited about all that we can accomplish in 2019, including the final phase of our multi-year technology migration, which we plan to complete in October.”

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